Quotes, Invoices, and Credit Notes.
When to use each document type, how they relate to each other, and the lifecycle of a transaction from quote to payment to credit.
Quotes, Invoices, and Credit Notes
For: business owners figuring out which document to create.
InvoiceScript has four document types. Each serves a different point in the transaction lifecycle.
The transaction timeline
A typical transaction moves through these stages:
Quote → customer agrees → Invoice → customer pays → done.
If something goes wrong after invoicing, a credit note reverses part or all of the charge.
Not every transaction needs all stages. Many freelancers skip quotes and send invoices directly. Pro-formas are optional and used for specific situations.
When to use each type
Quote. Send a quote when you want to propose a price before committing. Quotes are non-binding. They do not generate a financial obligation and do not count toward your receivables. Use them for project proposals, estimates, or pricing confirmations.
Northwind Studio sends Globex GmbH a quote for a brand identity project: Q-2026-0001, €18,500 plus VAT, valid for 30 days. Globex accepts. Mira creates a new invoice with the same line items.
Pro-forma invoice. Use a pro-forma when you need a document that looks like an invoice for customs, prepayment requests, or import/export paperwork, but is not a real tax invoice. Pro-formas have their own numbering sequence (PF prefix) and do not accept payments.
Invoice. The standard sales invoice. Send it after delivering goods or services. The invoice creates a financial obligation: the customer owes you the stated amount by the due date. Invoices accept payment recording and appear in your dashboard KPIs.
Credit note. A credit note reverses part or all of a finalized invoice. Use it when you overcharged, when the customer returns goods, or when you agreed to a discount after the invoice was sent.
Credit notes can only be issued from a finalized invoice. You cannot create them standalone. InvoiceScript copies the source invoice's line items into a credit note draft. Edit the draft for partial credits, then finalize.
How documents link together
InvoiceScript tracks the relationship between credit notes and their source invoices. Each credit note links back to the invoice it credits, and each document's detail page shows a Linked documents panel.
Quotes and pro-formas are standalone documents. They do not link to invoices in v1.0.
Worked example
Mira Holst at Northwind Studio works with Acme Hardware on a website project:
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Quote Q-2026-0002 : Mira quotes 40 hours of design at €125/hour plus 20 hours of development at €135/hour. Total: €7,700 plus 21% VAT.
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Acme accepts. Mira creates Invoice NW-2026-0004 with the same line items by hand. She finalizes and sends it.
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After delivery, Acme reports that 4 development hours were not needed. Mira issues a Credit Note CN-2026-0001 from NW-2026-0004. She edits the draft to keep only the development line and changes the quantity from 20 to 4. The credit note total is €653.40 (€540 plus 21% VAT). She finalizes and sends it.
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Acme pays the net amount: €9,316.60 minus €653.40 = €8,663.20. Mira records the payment on NW-2026-0004.
The invoice and credit note are linked. The invoice detail page shows the credit note in the linked documents panel.
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